Question: On March 1 , 2 0 2 4 , Everson Services issued a 5 % long - term notes payable for $ 2 1 ,

On March 1,2024, Everson Services issued a 5% long - term notes payable for $21,000. It is payable over a 3-year term in $7,000 annual principal payments on March 1 of each year plus interest, beginning March 1,2025. Each yearly installment will include both principal repayment of $7,000 and interest payment for the preceding one - year period. On March 1,2025
The accounting period ends on December 31.
A. Everson will receive $7,000 as an installment payment
B. Everson must pay $1,050 of interest to the note holder
C. Everson must accrue $7,000 of Interest Expense
D. Everson must accrue the next note payment of $7,000 as the current portion of principal payment
On March 1 , 2 0 2 4 , Everson Services issued a

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